Mr David Hyman and Mrs Sally Hyman v HMRC [2019] UKFTT 0469 (TC)
Background
We recently reported that HMRC were understood to be raising raised a number of enquiries into SDLT returns where the lower “mixed use” rates of SDLT have been paid on acquisitions, but which HMRC consider are solely “residential land”.
Putting forward a case for mixed use can be attractive given that the SDLT rates for residential property are up to 15% whereas the maximum SDLT rate for non-residential or mixed use property (comprising residential and non-residential elements) is 5%.
Back in September last year, HMRC published notes of its discussions with industry bodies on the definition of residential land, which, at a high level, indicated that there would need to be formal revenue generating arrangements (e.g. a clear commercial use) if land land or other buildings surrounding a dwelling could be treated as non-residential land and, therefore, the entire acquisition as mixed use.
